Looking at the data and the trend of daily and weekly chart, we are seeing a weak positive inflow, which means that the price is looking to bounce from one of the supply zones to the level of 1.33/1.34 where I can expect further weakness. The demand destruction, global recession will have dramatic impact on oil over the next 3 - 6 months, which in turn will drastically affect the CAD. I believe this will be a risk aversion month, where Dollar/CHF/YEN will rise.
Seeing also CAD's key inflation metrics, we can see it is dramatically falling by over 1.3% and 1.5% per month (raw material and energy prices) which will have a direct impact on general inflation.
Seeing also CAD's key inflation metrics, we can see it is dramatically falling by over 1.3% and 1.5% per month (raw material and energy prices) which will have a direct impact on general inflation.
Comment:
Inflation in CAD is slowing at a rapid pace, and with great US data, it seems that Dollar has a bit of a way to go before finally declining in Q4
Comment:
USD/CAD is at my supply zone and there have been a few weak rejections, it shows me that the buyers are still in play and I can expect this pair to reach the 1.33 handle, failure of 1.32 could push this pair back down to 1.31 area.
Trade closed manually:
Closed the long on this pair, perfectly reacting against my supply zone.
Waiting for confirmation of a breakout of 1.33 for further trades.
Waiting for confirmation of a breakout of 1.33 for further trades.
Comment:
Beautiful reaction on a daily time frame as expected, the CAD data was too weak for the pair to go down. Oil prices might be the only thing from stopping it completely rallying back to 1.36 mark.